H. DALE HERRING 352-356-1099

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H. Dale Herring Presents; Living and Working in the Country

Dale's Message: The demand for timber worldwide is strong, and our remote section of Florida, along with other timber growing regions of the Southeastern U.S., is benefiting. In a state where undeveloped real estate gives way to neighborhoods and commercial projects, our timber-rich part of North Florida is unique. Forest covers about half of Florida's land area, with more than 17 million acres of forest. With over 75 primary wood-using mills, Florida has the market for timber. Our state forestry industry employs over 24,000 people and infuses $25 billion into the state's economy. FYI: One board feet equates to: lumber that is 1ft. long, 1ft. wide and 1in. thick (or its equivalent).

Timber Tax Classification: Your Timber property can be classified under 1 of 3 tax classifications. Tax classification is dependent on, your purpose of owning the property, your use of the property, and what activities occur on the property.

Personal:  If you own your property strictly for your own private use or that of family members, such as residence, hunting, fishing, family retreats and no profits are made from the property it is classified as personal. There is no profit made from personal timber property. There are no timber sales.

Investment: The primary use of the property is for making a profit, this must be documented. The property is held for income producing purposes over a period of time. Investment timber sales are considered Capital Gain, not ordinary income. Tax rates are lower and social security benefits are not affected.

Business: Similar to Investment, used primarily for profits but on a more regular, continuous, and active basis. Timber sales from Business can come from a lump sum sale or pay as you cut contracts. Lump sum sale is an outright sale where a certain amount and payment is agreed on in advance. Pay as you cut contract mean all parties agree to a specific rate per unit as needed.

Buying or Selling, contact THE LAND MAN TODAY!

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